MUMBAI, March 2 (PTI): Indian rupee depreciates by 11 paise, to close at 82.60 (provisional) against the US currency on Thursday as a stronger dollar in the overseas market and a muted trend in domestic equities weighed on investor sentiments.
Sustained foreign fund outflows further weighed on the local unit, according to forex traders.
At the interbank foreign exchange market, the rupee opened at 82.57 against the greenback and closed at 82.60 (provisional), registering a fall of 11 paise over its previous close of 82.49.
During the session, the domestic unit witnessed an intra-day high of 82.54 and a low of 82.61 against the American dollar.
Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.25 per cent higher at 104.74.
Global oil benchmark Brent crude futures advanced 0.53 per cent to USD 84.76 per barrel.
The Indian rupee in line with Asian currencies depreciated after gaining in the last two days amid higher crude oil prices, foreign fund outflows and a surge in bond yields, said Dilip Parmar, research analyst, HDFC Securities.
The hawkish comment from the US Federal Reserve and US economic data indicates higher interest rates for a longer time supporting the dollar bulls, he added.
“Back to home, spot USD INR has been consolidating between 82.50 to 83 since February 6. We expect the current consolidation in USD INR may continue for a few more days but the direction of the dollar against major currencies is pointing towards an upward move,” Parmar said.
The 30-share BSE Sensex ended 501.73 points or 0.84 per cent lower at 58,909.35, while the broader NSE Nifty declined 129.00 points or 0.74 per cent to 17,321.90.
Foreign Institutional Investors (FIIs) were net sellers in the capital markets on Wednesday as they offloaded shares worth Rs 424.88 crore, according to exchange data.